Strategic Options for Starbucks: A Three-Year Plan to Achieve Long-Term Goals

The Starbucks company uses various marketing strategies, including SWOT analysis and marketing mix strategies, to expand its business globally and maintain flexibility in the market. The organization focuses on product line and rapid growth strategy to meet long-term goals and objectives. It also uses distribution and advertisement strategies to promote and build the image of the company. Additionally, it focuses on market segmentation, positioning, and target market to evaluate customer needs and desires. Despite facing various challenges, the company aims to increase its revenue by 10% in the next five years, expand its food menu, and provide home delivery services.

Running head: Strategic management
Strategic management

Strategic management
Executive summary
The report presents a brief overview of the strategic management of the star bucks company. It
explains the major issues which exist in this company. The company does not maintain the
reciprocal relationship with its customers. It is one of the biggest issues in the organization.
Another side, the company does not maintain discipline at the workplace. Therefore, it is unable
to focus on the core values and competencies of the company. The company needs to focus on
the management and operation activities of the organization. The Starbucks is using inadequate
marketing strategies to gain the various opportunities in the market. It tells that how the company
is using the corporate level strategies, business level and strong leadership in the organization. It
shows that how the company is achieving the goals and objectives of the organization with using
various strategies. It explains the future plan of the company in order to meet long-term goals
and objectives. The company is using BCG matrix, SWOT analysis, and porter five forces
model. The Starbucks coffee comes in different varieties, tastes, and flavor. It is one the biggest
companies in the coffee industry. It is operating its business in more than 35 countries across the
world.
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Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Major issues in star bucks corporation.........................................................................................................4
Corporate level strategy between periods of 2008-2014 area......................................................................5
Merger and acquisition strategies...............................................................................................................6
Business level strategies between periods of 2008-2024............................................................................6
Strong leadership in Star bucks corporation................................................................................................6
Fit between Starbucks strategy and its goals and objectives........................................................................7
Strategic Options three years and beyond from 2014 plus.........................................................................8
Recommendation.........................................................................................................................................8
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10
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Strategic management
Introduction
The report presents a brief overview of the strategic management. It explains the key
issues and obstacles of Starbucks Corporation. It explains that how the company is making
effective strategies to gain the competitive advantage in the market. The strategic approaches
play a significant role in the company. It describes the relationship between company strategy
and its goals and expectations. Starbucks is an American coffee industry which offers coffee to
its customers. It explains the position and image of the company over the next 5 years.
Major issues in star bucks corporation
The Star buck is an American coffee company which was founded in 1971 in Seattle
Washington. It is the coffee industry and it serves hot coffee, whole bean coffee, and cold coffee
in 23,768 locations across the world. But now a day’s the company is facing various key
challenges. They are discussed below (Bateman & Snell, 2013).
 The company does not maintain the good relationship and communication with baristas
and customers. Thus, the customers do not want to go at stores and they do not feel
comfortable at the shops. It losses the coffee aroma and warm feeling in the stores.
 The competition exists among McDonalds, caribou coffee and Dunkin Donuts so it faces
many difficulties. Thus, the competition is increasing day by day. The management and
operation of the company are very poor. Discipline and mismanagement are other key
issues exist in the organization (Holsapple, 2013).
 The corporation does not maintain the control over the stores. It losses the core values
day by day. It does not appoint the trained person to serve coffee and drinks. The
company appoints only inexperienced baristas. Therefore, it faces many difficulties due
to inexperienced employees.
 The company does not focus on the core values and competencies. Thus, the organization
losses it cores values and significance.
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Strategic management
 The organization is also facing the economic challenges of the recession, globalization,
global imbalances, and environmental issues.
 The sustainability is another issue in the company and it does not follow the proper rules,
regulations, and compliance of the corporation. Now it can be said that various key issues
exist in the management (Chua & Banerjee, 2013). Therefore, the company needs to
improve and overcome on these key issues and problems. It should also improve the
economic and social conditions of coffee farmers. It should minimize the various
environmental impacts and it should provide the excellent working environment to its
employees (Einwiller & Johar, 2013).
Corporate level strategy between periods of 2008-2014 area
The Star buck is using the corporate level approach in the organization to gain the
success and growth of the company. In this strategy, it is focusing on the products and services
of the organization. It is maintaining the excellent quality and quantity of the products. It is
providing the unique point of products and service experience to its customers. It evaluates and
analyzes the various key obstacles and problems of the company which exists in the environment
(Battistella, Biotto & De Toni, 2012). Low calories food and hot coffee and cold coffee are part
of the organization to attract the customers at the stores. Through corporate level, strategies, the
company is utilizing the resources effectively and efficiently. It is enhancing and increasing the
customer experience and its core values. It is expanding its business activities and operations
domestically as well as internationally (Schultz, 2012). It provides training to employees to serve
the various services for the customers. It is controlling on the average store opening costs
through its corporate-level strategy. It is building a good relationship with exporters and growers
and checking the conditions of crop yields and agriculture. It is trying to maintain sustainability
in the environment with the help of corporate level approach. It is promoting and enhancing the
coffee cultivation methods and approaches to protect biodiversity (Sethi, 2012). Through
corporate level strategy, the company is maintaining the healthy working environment. It is also
making effective strategies to overcome on its various competitors. It uses the biggest social
media networks through its effective corporate level strategy. Starbucks is one of the recognized
brands across the world. The company is implementing growth expansion strategy in order to
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Strategic management
achieve the organizational goals and objectives. Through corporate level strategy, the company is
generating more revenue and profit (Hill, Jones & Schilling, 2014).
Merger and acquisition strategies
Starbucks uses the merger and acquisition strategy to create and maintain the diversification in
the market. This strategy helps to reduce the costs and expenses and it increases its revenue and
profits. Through merger and acquisition strategy, the company is taking the competitive
advantages. This strategy gives opportunities to the organization to reach into the markets. The
company is improving its financial position in the market. In this strategy, the organization
integrates its business operations and activities with other company, therefore, it gains various
competitive and market benefits across the world. Through merger and acquisition, the company
shareholders increase their net worth and value. It is time-consuming strategy and it reduces the
various legal issues. Thus, the Starbucks is using the merger and acquisition strategy.
Business level strategies between periods of 2008-2024
The company is using the effective business-level strategies to gain sustainability and long-term
objectives of the organization. The business level strategy includes the cost leadership, focus,
and differentiation. This strategy focuses on the quality services and atmosphere of the stores. It
plays a significant role in the Starbucks Corporation. It also focuses on the various coffee
products to attract the customers in the market. The company is also focusing on the innovation
to attract the more customers in the market. It is continuously producing innovative products to
satisfy the customers (Oluikpe, 2012).
Strong leadership in Star bucks corporation
Leadership plays a significant role in every organization to focus on the activities of the
employees. It is one of the success factors of the Starbuck’s corporation. The company appoints
right and competent employees for doing the work. The leaders of the company evaluate and
analyze the performance and activities of the employees. They promote and motivate the workers
to do work effectively and efficiently. They maintain proper communication with their workers
and provide a good working environment to the employees. Leaders listen to the queries of the
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Strategic management
employees and resolve them effectively. In this way, the company is using effective leadership
strategy in the organization (Hill, Jones & Schilling, 2014).
Fit between Starbucks strategy and its goals and objectives
There is a close relationship between the company strategy and its goals and objectives.
The company strategy influences the goals and objectives of the company. If the company makes
effective strategies then it can easily achieve goals and objectives of the company. The Starbucks
is using the various strategies in order to meet the organizational goals and objectives. The
company uses the differentiation generic approach to determine and evaluate the growth and
success of the company (Kapferer, 2012). The main objective of this strategy is to make the
effective company which would be different from the other competitors. Another side, the
company is using the responsible and sustainable policies and procedures to differentiate its
products from other competitors. It focuses on the innovation to attract the more customers in the
market. The organization is using the effective product mix and supply chain strategy in order to
meet the goals and expectations of the company. Starbucks also uses the intensive strategies in
the market. In this strategy, the organization tries to achieve the maximum level of revenue in the
existing market. The intensive growth strategy depends upon the market penetration, market
development, and product development. The company is using the various market and product
development strategies to overcome on the competitors (Oluikpe, 2012). The company also uses
the various marketing strategies like SWOT analysis and marketing mix strategies to expand its
business globally. In this way, it maintains flexibility in the market. The organization is using
the product line and rapid growth strategy in order to meet long-term goals and objectives of the
company. It uses the various distribution and advertisement strategies to promote and build the
image of the company. It uses the various prices strategies to control and maintain the prices of
the products. It also focuses on the market segmentation, positioning, and target market to
evaluate the needs and desires of the customers (Peppers & Rogers, 2016). In this way, the
company is trying to make unique and excellent position in beverages and coffee industry. Now
a day’s the company is facing various challenges in the generic strategy. Thus, the company
should improve its competitive and generic strategy in order to meet its effective objectives and
expectations. It should also focus on the strategies and plans of the competitors to gain various
competitive advantages and benefits (Khatri, Sirota & Butte, 2012).
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Strategic Options three years and beyond from 2014 plus
After various researches, it has been found that the company is expanding its business
day by day. The company wants to achieve its long-term goals and objectives. It wants to open
approximately 12,000 new stores across the world. It is improving its products and services to
overcome on its competitors. It is trying to offer more food products and beverages to the
customers. The company wants to increase its revenue by 10% in the next 5 years plan. It is
continuously improving its financial and economic performance. The company is making the
new leadership and marketing strategies to gain the sustainability in the market. It is making new
intensive and growth strategies to make the good position in the market. The further plan is to
open standalone princi stores in Seattle New York in 2018. The company will serve an
innovative pipeline which elevates and promote the brand name across the world. It is expanding
its food menu in the world (Wang, 2012).
In the next five years, Starbucks expects its effective channel development segment that
includes its consumer packaged goods, ready to drink segments, branded solutions which will
help to increase the revenue and profit of the organization. The company wants to increase in its
food products to gain the various growth opportunities in the business. The growth strategies
should focus on the additional penetration and untapped rural market across the world. Further, it
will build and maintain the loyalty, trust, and faith in the organization. The company is also
trying to provide the home delivery services to its customers. It will help to build and maintain
the good relationship with the customers in the market. It wants to provide a good working
environment to the employees for providing services to its employees. In this way, the company
will attain the long-term mission and vision of the company. The main objective of the company
is to become the primary retailer in the coffee industry across the world. There are various
factors also exist in the market which influences the business activities and operations of the
company. Therefore, various analyses are done by the organization to check and evaluate the
external factors of the company. In this way, the company controls on the various barriers of the
market (Tu, Wang & Chang, 2012).
Recommendation
There are various key issues exist in the Starbucks company. Therefore, various
recommendations have been given to the company to improve key management issues. The Star
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Strategic management
bucks’ corporation should identify the needs, desires, and requirements of the customers to
provide fast services to its customers. The company needs to make changes in current e-
commerce strategies to attract the more customers across the world. It should build and develop
the effective communication system to motivate and improve the performance of the employees.
The organization should introduce some online coffee tour package to provide hotel
accommodation and cheap and reasonable travel tours. It is one of the successful companies
across the world to provide satisfaction to its customers. Thus, it should build comprehensive and
effective strategies to increase the revenue and profit of the corporation. The company should
adopt the two policies of product market diversification and product development to gain the
competitive advantages. The organization must locate their business operations in the high traffic
areas.
Conclusion
The report is based on the strategic management of the Starbucks Company. It is the
biggest coffee industry across the world. Now it is concluded that the company is using the
effective strategies and approaches to identify and evaluate business activities of the competitors.
The strategies and approaches play a significant role to attain the goals and objectives of the
company. Through the excellent strategies and plans, the company will build and develop the
corporate image in the world. These strategies will also help to provide satisfaction to the
customers.
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References
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world. McGraw-Hill Irwin.
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Chua, A. Y., & Banerjee, S. (2013). Customer knowledge management via social media: the case
of Starbucks. Journal of Knowledge Management, 17(2), 237-249.
Einwiller, S. A., & Johar, G. V. (2013). Countering accusations with inoculation: The
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Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
Holsapple, C. (Ed.). (2013). Handbook on knowledge management 1: Knowledge matters (Vol.
1). Springer Science & Business Media.
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Kapferer, J. N. (2012). The new strategic brand management: Advanced insights and strategic
thinking. Kogan page publishers.
Khatri, P., Sirota, M., & Butte, A. J. (2012). Ten years of pathway analysis: current approaches
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Oluikpe, P. (2012). Developing a corporate knowledge management strategy. Journal of
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Peppers, D., & Rogers, M. (2016). Managing Customer Experience and Relationships: A
Strategic Framework. John Wiley & Sons.
Schultz, H. (2012). Pour your heart into it: How Starbucks built a company one cup at a time.
Hachette UK.
Sethi, S. P. (2012). Multinational corporations and the impact of public advocacy on corporate
strategy: Nestle and the infant formula controversy(Vol. 6). Springer Science & Business
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Tu, Y. T., Wang, C. M., & Chang, H. C. (2012). Corporate brand image and customer
satisfaction on loyalty: An empirical study of Starbucks coffee in Taiwan. Journal of
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Wang, R. (2012). Investigations of important and effective effects of green practices in
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